SG Holdings has entered into an agreement with the Top 5 Shareholders of Expolanka Holdings PLC to buy 30% stake of the company for a purchase consideration of US$ 49 million.This far reaching and strategic deal would see both parties working towards growing and strengthening Expolanka’s position in the global logistics industry.

SG Holdings, the holding company for the Sagawa Group, is a leading Logistics company in Japan with a presence in the Asian Region.With the view of consolidating its operation in Sri Lanka &strengthening its global presence, SG Holdings intends to purchase majority shares of the company in total once themandatory offer is approved.

Commenting on the move, Hanif Yusoof, Group CEO/Director, Expolanka Holdings PLC said, “With the Sri Lankan economy moving forward in the positive direction, there is a great potential for export growth as well as global expansion in the freight and logistics industry. In view of this, the partnership with SG Holdings willget us closer to our vision of being a strong freight andlogistics player in the region.”

Yusoof added, “This was a very big decision for the Top 5 Shareholders as they have been part of Expolanka; managing the business over 30 years, and  they felt that this partnership was important for the long term success of the organization..

Freight and logistics is a core business of Expolanka Holdings which has over the last 3 decades established itself as a premier provider of freight forwarding and supply chain management solutions in Sri Lanka and the Indian subcontinent. With a cluster of companies focusing on multi-modal freight and transport solutions and a global footprint, spanning 4 continents and 18 countries.SG Holdings currently owns 24 locally-incorporated subsidiaries in 10 countriesoutside Japan, including China, Vietnam, and Singapore. The Group has identified strengthening their overseas operation in the area of global freight forwarding as one of the core pillars.

Nobuaki Kondo, Representative Director of SG Holdings said, “We saw great value in Expolanka Holdings and especially the strength and the strategic fit in the Freight and Logistics business. This acquisition will certainly help Sagawa to further increase and strengthen our foot print in Asia.”

“This move further endorses and supports our groups’ strategy of focusing on our core business of freight and logistics. We also believe that the Synergies that can be achieved through this new partnership will propel Expolanka towards achieving our Objectives faster with a more focused & clearer vision” Yusoof concluded.

It was also stated that Hanif Yusoof will remain as the Group CEO to guide the company in the direction of becoming a stronger force as a Sri Lankan company in the global arena.